159x return, 40 active investments and "never overpay"

I spent the last weekend studying and researching someone who has hired and worked with over 100 CEOs. He is one of the best, having sold his business for billions.

"Spend time with weirdos. The next generational CEO in your pipeline might not look like one. Don’t let LinkedIn filters kill your upside"

So, if you want to attract more weirdos’ into your life and business…

I’d go and build a newsletter (yes, a newsletter) which allows you to share your thoughts and ideas with the world.

But be smart and DO NOT do it yourself…

That’s why I partnered with Spacebar Studios; this is their bread and butter.

They’ve grown one of their clients' newsletter from zero to 115k subscribers in 14 months (imagine what that would do for you and your business?)

They then grew the list to over 35,000 engaged operators;

Not to mention a few into seven-figure pipelines and ARR.

Their current offer to my readers (you) is that they’ll create a completely new newsletter for free.

So go and book a free strategy call right now while slots are still open.

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I don't know why, but I look at this super high-quality image with all the little details almost daily, sometimes for 5-10 minutes and every time it quietly whispers to me, "more courage, more courage, you just go and do it."

For some reason, it really allows things to be put in perspective. Folks run and build buildings like this -- they find the location, negotiate with banks, negotiate with investors, buy the location, work with architects, the construction companies, overcome all 1,000 different problems while having all the patience in the world to get it done.

The lesson and message I always get: what is needed is just more courage and nothing else.

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Wanna see what's possible when private equity thinking goes beyond a typical 5-7 year horizon?

3i Group from the UK backed Action when it was doing €600m in revenue and €70m in EBITDA.

Now €14b in revenue and €2.1b in EBITDA

• opened 350+ stores last year

• so far 159x return (Yes, 159x)

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Yes, it may be the North Star, but it all comes down to the people you choose to build such a company...

But also the people you learn from, the people you collaborate with, surround yourself with.

The sponsor of today’s newsletter (ScalePath) has created a community of such people:

Where can you find answers to questions like these:

They’ve built a network of over 2,000 business owners across the U.S. and Europe.

Their team will personally introduce you to up to 3 entrepreneurs and operators in your area.

Book your free intro call now.

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Is it even possible to know more about this dirty but extremely profitable industry than this guy?

No way...

Let me introduce you to one of my best friends.

He spent years running a traditional line striping business. Think of painting parking lots, roads, factories.

It was such a hard, repetitive, and stressful job that they even broke up with my sister 8-9 years ago while running the biz (they're still friends but his life really was tough at the time).

• Labor was unreliable

• Weather slowed everything down

• People show up drunk or don't show up at all

• Margins were so so

But the demand never stopped...

5-6 yrs ago he sold the business.

Most folks would’ve called it a win and moved on. But he took a year off, visited me in Australia, traveled in the US, etc.

Still kept thinking about the inefficiencies of this industry - the lack of software, the absence of automation, the fact that the industry hadn’t changed in decades.

So he went into a building mode:

He started over.

But this time, not with a truck and a crew -- with software, robotics, and AI.

His new startup, 10Lines, is reimagining line marking from the ground up. They’re building autonomous robots that can map, plan, and paint lines 10x faster than traditional crews...

With almost no human intervention.

It’s a smart way of doing this. And the market is huge.

They’ve already raised $1.5M, proven the tech works, and are now gearing up to scale in the USA.

They are no meeting investors who understand that "boring industries" often hide the biggest opportunities — if you’d like an intro and maybe even invest in a great founder - send me and email. Or message Tarmo directly: tarmo at 10lines dot eu

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Here is a gentleman who lives a life that 99% of folks in finance would dream of:

Started with 2 co-founders who exited some time ago (wanted to retire). Now works with wife and kids are also very involved. Has 3 homes (2 in Europe 1 in US). Travels and works a lot while really enjoying life. Great energy and very generous with details of his journey, advice.

(Btw I have good news for you, he replied that he will be coming to the podcast in September.)

To make sure you’re not missing the episode, go follow or subscribe Holdco Builders podcast if you haven’t yet.

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The traditional business owner whose company paid almost $50m in dividends last year.

I've pitched him many times but he never invest. Says he never invests outside of his speciality.

Some lessons from these conversations:

The main thing is what David Senra from Founders podcast has said: "Bad boys more in silence".

His family built a logistics holdco while staying completely out of the spotlight. Zero media, zero interviews.

"I would like to take a walk around the city"

Full-stack logistics = full control. By owning the entire logistics chain (land, sea, air), they became irreplaceable to global players.

Talent over tactics. Like a law firm, the core value was in the people. They've always taken top talent from rivals and turned loyal logisticians into millionaires.

Calm operators win long-term. While others reacted to crises with noise, they quietly made smart, timely decisions -- and are still collecting the dividends.

They've built a generational business without chasing fame and now passing that low-ego money machine to his kids.

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How has been the week in the small holding company world?

Consumer loan company

Things are getting serious at the loan company we are building.

We're slowly but steadily entering the SMB financing space.

What used to be insane ticket sizes will become our daily normal if we keep doing the great job.

One $15k ticket covers a bunch of smaller <$500 tickets.

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This week’s podcast:

Holdco Builders podcast had almost 1,000 downloads on Tuesday alone (not so long ago we did this in a month).

Glad to see so many people interested in buying and investing in businesses.

This must be great for society.

Which leads me to this:

Is this the ultimate Holdco model (built by a 25 year old)?

• How Jack does 10+ deals per year

• $8m in revenue and $2.5M in EBITDA

How?

1.  Stop chasing $250k and build something that pays you $2M

2.  Integration starts at LOI, not after the deal closes.

3.  We give you money, show up at the board meeting, and expect results.

4.  The operator is the investment.

5.  We built a Lighthouse with a spreadsheet, two guys, and a phone.

6.  Within two weeks, we know who to bet on.

7.   Never overpay. Even if your multiple rises, stay disciplined.

Enjoy.

Here are the links to Spotify, Apple Podcasts and YouTube.

That’s all for today.

Thanks a lot for reading and I’ll share a few updates again next week.

Take care,

PrivateEquityGuy / Mikk Markus